Residents angry at City of Yarra approving new waste levy

Natalie Hutchins has queried whether Yarra City councillors “actually engaged” with the local community before implementing a controversial waste levy that has caused uproar.

Residents protesting outside Richmond Town Hall on Tuesday. Picture: Jason Edwards

Senior Labor minister Natalie Hutchins has called on Yarra City councillors to “think hard and quite fast” about whether they “actually engaged” with the local community before implementing a bin tax.

Chaotic scenes broke out at Richmond Town Hall on Tuesday night as residents expressed fury at the controversial bin tax.

Three Greens and three other councillors, including Mayor Claudia Nguyen, voted 6-3 to proceed with the waste levy to collect kerbside bins.

Senior Labor minister Natalie Hutchins has called on City of Yarra councillors to ‘think hard and quite fast’ over the bin tax. Picture: Luis Ascui

On Wednesday, Ms Hutchins said: “I think this sort of bin tax will have quite an effect — some of the lowest-income earners in that area will struggle with paying this”.

“I don’t know that the timing has been the best with the current cost of living pressures, but I would really encourage the councillors to engage in a conversation with ratepayers before putting that motion into action.”

Ms Hutchins said while councils were allowed to levy around rubbish removal and recycling, they must consult with residents and ratepayers before implementing any new taxes.

“The process that this government put in place is that there has to be community consultation around any increases that a council puts in place,” she said.

“I’d say that this council has potentially skipped that process and not had the public consultation, just through the reactions of people that I’ve had conversations with who were not aware of this decision.”

About 200 people rallied on Tuesday night. Picture: Jason Edwards

Many residents spoke to voice their opposition after the meeting, slamming Yarra’s move to separate the waste charge from household rates.

Some of the estimated 200 crowd, including those who had registered to speak, were locked outside the building at the start of the meeting.

Many long-term Yarra residents said it was their first time attending a council meeting.

A motion by independent Cr Bridgid O’Brien, backed by Cr Stephen Jolly and Cr Michael Glynatsis, to defer the vote was lost.

Cr O’Brien said the proposal needed further analysis, as well as community consultation and a check on its equitability.

“There is no analysis on moving to a user-pays model,’’ Cr O’Brien said.

Cr Glynatsis said the council had not covered itself in glory with its approach.

Residents packed the council meeting room after the protest. Picture: Jason Edwards

“The idea of passing new fees without proper consultation doesn’t pass the pub test,’’ he said.

Cr Jolly said too much of Yarra’s money had gone to senior management.

Much of the crowd’s discontent was directed at Cr Herschel Landes who backed the bin tax motion, saying waste collection costs had blown out to $20m.

“This council is having to deal with legacy issues from previous councils,’’ Cr Landes said.

The waste charge would be based on the value of the property, he said.

Chief executive Sue Wilkinson said Yarra was looking at securing its long-term financial sustainability.

But resident Lyndy U’Ren said the council had encountered financial stormy waters but expected residents to bail them out.

Many people criticised the lack of consultation over the plan.

Kenneth Gomez said the handling of the bin tax and associated media coverage had damaged Yarra’s reputation.

“You wanted to impose a charge on people without talking to them first,’’ Mr Gomez said.

Clifton Hill resident Paul Jackson said the council’s behind-closed-doors decision-making breached the trust of ratepayers.

“You are running the council for the benefit of its employees, not the community,’’ Mr Jackson said.

“Clean up your act or you can expect to be cleaned out at the next election,’’ one speaker said.

Peter Razos said Yarra needed to look at its own operating costs and that the income from recent new developments should ensure its financial stability.

Caroline Harvey said the change would not improve waste collection services and that council should rein in frivolous spending.

But one resident said the proposal was a sensible reform and that the opposition was based on misinformation.

Kevin McMahon said more than 50 per cent of people in Yarra were renters who would cop the bin tax from their landlords.

Earlier, about 200 City of Yarra residents gathered outside Richmond Town Hall on Tuesday chanting “bin the tax” in protest over their council’s plan to introduce a controversial new waste levy.

Yarra councillors are considering the plan which is to separate the waste charge from annual rates bills.

Cr Stephen Jolly, who is leading opposition to the levy, said the council had been shifty and disrespectful of residents in its approach.

Cr Jolly said the change meant council could jack up the tax in years ahead.

“Any councillor that votes for a bin tax will be binned at the next election,” Cr Jolly said.

The bin taxes also would have a flow-on effect on renters, he said.

After the protest, residents packed the council meeting room, with many having to stand while others were locked out.

Cr Bridgid O’Brien, who along with Cr Jolly and Cr Michael Glynatsis will seek to defer the proposal, called for a review and full consultation to ensure greater transparency and equitability.

Resident Catherine Millili told the rally that said the state-appointed monitor last year found the council had $40m in unsustainable debt but rather than review its own internal operations Yarra had turned to a bin tax on residents.

Sixty residents have applied to speak at the meeting.

The Herald Sun last month revealed Yarra’s bin tax plans, including a longer-term proposal to only collect households’ general rubbish, or red-top bins, every fortnight, instead of weekly.

Residents face an annual bin tax of up to $115 this year — a levy over and above their household rates bill.

The charges will be for household bins but also another one levy is being considered for emptying street bins.

Unlike other councils, Yarra has built its waste costs into rates bills, but if it is separated it won’t be subject to any rate cap, leading to fears the charge could skyrocket in years to come.

A council report said the waste levy was needed otherwise other vital services could be cut.

“Separating the waste charge from general rates is a critical component to ensuring council’s future financial sustainability is not eroded further,’’ it said.

“The total impact for properties … would be approximately $12 to $115 ($2 per week).’’

Yarra has not said if rates would go up by the maximum 3.5 per cent, a limit set by the state government this year.

The latest financial update for the half-year to December 2022 also revealed that the council was tracking $15m better off than budget.

For the first time at a Yarra meeting, private security guards were on duty to manage the large turnout of residents concerned about the proposed “bin tax”.

The security moves follows the installation of a temporary barricade — labelled the Great Wall of Yarra — which was placed between the public and councillors during last August’s meeting.

The council covers Richmond, Fitzroy, Collingwood, Burnley, Abbotsford, Clifton Hill and parts of Carlton, Fairfield and Alphington.